The demand for AI is not lacking, but the computing power is. Morgan Stanley warns that supply bottlenecks may last for several years.

Michelle Weaver of Morgan Stanley stated that the application of artificial intelligence by enterprises is increasingly yielding substantial results, but limited computing power remains a bottleneck restraining growth. "Our supply is extremely inadequate. We see computing power becoming a constrained resource," said Weaver, an equity research strategist at Morgan Stanley. "Power bottlenecks, political bottlenecks, and labor bottlenecksthese factors will restrict supply in the coming years." Weaver made this assessment during an interview as companies accelerate their adoption of AI. She noted that 25% of S&P 500 companies can now quantify the measurable returns from AI investments, up from 14% a year ago. Funding for data centers is also abundant, exemplified by NVIDIA's collaboration with Wall Street financial institutions to raise $500 billion for AI infrastructure.